The U.S. Department of Agriculture (USDA) has filed an administrative complaint against US Fresh Corp. for alleged violations of the Perishable Agricultural Commodities Act (PACA). The company, operating from New York, allegedly failed to make payment promptly to 38 produce sellers in the amount of $952,319 from April 2021 through April 2022.
US Fresh Corp. will have an opportunity to request a hearing. Should USDA find that the company committed repeated and flagrant violations, it would be barred from the produce industry as a licensee for three years, or two years with the posting of a USDA-approved surety bond. Furthermore, its principals could not be employed by or affiliated with any PACA licensee for two years, or one year with the posting of a USDA-approved surety bond.
USDA has also distributed payments from a PACA surety bond to 28 firms for reparation awards issued against Rain Forest Produce Inc., Los Angeles, California under PACA.
In accordance with the PACA, a surety bond in the amount of $300,000 was posted in July 2019, on behalf of Rain Forest Produce Inc., as a prerequisite to employ Ricardo Villalobos. Rain Forest Produce Inc. went out of business in February 2020 and the bond was retained for an additional nine months to cover the statutory period for filing complaints under the PACA. The surety bond provides for the payment, or prorated payment, of any PACA reparation awards issued during the bonding period against Rain Forest Produce, Inc. that were not paid or appealed.
Also, Los Angeles Produce Distributors LLC, operating out of Los Angeles, California, has posted two $250,000 surety bonds to employ Fernando Pantoja and Tony Perez, as required by PACA.
Pantoja and Perez were officers of Rain Forest Produce Inc., Los Angeles, California which was found to have committed repeated and flagrant violations of Section 2 of the PACA.
Any PACA licensee wishing to employ individuals who have failed to pay a reparation award, or have been subject to a USDA disciplinary action, must post a USDA-approved surety bond. USDA will hold each $250,000 bond for four years and nine months, effective Dec. 17, 2022, providing assurance to the industry that the firm will be able to pay for produce purchased and to conduct its business according to PACA rules.
Any PACA licensee wishing to employ individuals who have failed to pay a reparation award, or have been subject to a USDA disciplinary action, must post a USDA-approved surety bond. USDA holds the surety bond for four years, providing assurance to the industry that the company will be able to pay for produce purchased and conduct its business according to PACA rules.
Click here for an overview of companies that previously violated PACA.
For more information:
Corey Elliott
USDA
Tel: +1 (202) 720-6873
PACAInvestigations@usda.gov
www.ams.usda.gov